Annual report pursuant to Section 13 and 15(d)

Restructuring and Other Charges

v3.23.4
Restructuring and Other Charges
 12 Months Ended
Dec. 30, 2023
Restructuring Costs and Asset Impairment Charges [Abstract]  
Restructuring and Other Charges [Text Block]
Note 7 : Restructuring and Other Charges
Years Ended (In Millions) Dec 30, 2023 Dec 31, 2022 Dec 25, 2021
Employee severance and benefit arrangements $ 222  $ 1,038  $ 48 
Litigation charges and other (329) (1,187) 2,291 
Asset impairment charges 45  151  287 
Total restructuring and other charges $ (62) $ 2  $ 2,626 
The 2022 Restructuring Program was approved to rebalance our workforce and operations to create efficiencies and improve our product execution in alignment with our strategy. Restructuring charges are primarily comprised of employee severance and benefit arrangements and are recorded as corporate charges in the "all other" category presented in "Note 3: Operating Segments" within the Notes to Consolidated Financial Statements. These actions were substantially complete as of December 30, 2023.
Restructuring activity for the 2022 Restructuring Program was as follows:
(In Millions) Employee Severance and Benefit Arrangements
Accrued restructuring balance as of December 25, 2021 $ — 
Accruals and adjustments 1,038 
Cash payments (165)
Accrued restructuring balance as of December 31, 2022 873 
Accruals and adjustments 222 
Cash payments (1,013)
Accrued restructuring balance as of December 30, 2023 $ 82 
The accrued restructuring balances as of December 30, 2023 and December 31, 2022 were recorded as current liabilities within accrued compensation and benefits on the Consolidated Balance Sheets. The cumulative cost of the 2022 Restructuring Program as of December 30, 2023 was $1.3 billion.
Litigation charges and other includes a $1.2 billion benefit in 2023 due to a reduction in the previously accrued $2.2 billion charge as a result of developments in the VLSI litigation in the fourth quarter of 2023. 2023 charges also include a $401 million charge for an EC-imposed fine. In 2009, we recorded and paid an EC-imposed fine that was subsequently annulled, resulting in a benefit of $1.2 billion in 2022. Refer to "Note 19: Commitments and Contingencies" within the Notes to Consolidated Financial Statements for further information on legal proceedings related to the VLSI litigation and EC fine.
Also in 2023, we mutually agreed with Tower to terminate the agreement we entered into during 2022 to acquire Tower due to our inability to obtain required regulatory approvals in a timely manner. We paid a termination fee in accordance with the terms of the agreement, resulting in a $353 million charge included in litigation charges and other.